GDI is Awarded Two Long Term Contracts by QP: Service Contracts for Two New Land Rigs Valued at QR1.1 Billion

GDI is Awarded Two Long Term Contracts by QP: Service Contracts for Two New Land Rigs Valued at QR1.1 Billion

11-06-2014

DOHA, QATAR- Gulf International Services (“GIS” or “the group”; QE: GISS), the largest service group in Qatar, with interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barge, helicopter transportation, and catering services announced that Gulf Drilling International Ltd. Q.S.C. (GDI), a wholly owned subsidiary of Gulf International Services (GIS), announced that it has been awarded two new contracts by Qatar Petroleum for the provision of drilling rig services.  The new contracts will cover services to be performed by two new land rigs (GDI-7 and GDI-8) that GDI is in the process of acquiring from a rig builder based in the U.S.A.  Each contract will have a term of five years and the combined value of both contracts is QR1.1 billion.

The two new land rigs (GDI-7 and GDI-8) are being custom designed according to QP’s specifications.  GDI-8 will be GDI’s largest land rig, and at 3000HP, it will have the capability of drilling deeper wells and executing extended reach wells to a much greater distance.  The new land rigs will also come with a number of ancillary assets that are required to support these operations including water well rigs, mobile cranes, trucks and trailers.  The total investment is being financed from a local bank on competitive terms.

Construction of the two new land rigs will soon commence and the rigs are expected to be received, mobilized from the U.S.A. and placed into service during the second half of 2015. GDI’s onshore base camp, workshop, storage yards, warehouses and accommodation facilities are also being expanded to accommodate these new operations.

Ibrahim J. Al Othman, Chief Executive Officer of GDI, said: “GDI fully acknowledges and appreciates the value of the partnership that has developed with Qatar Petroleum. Working with QP has given GDI the chance to develop its skills, technologies and competencies which in turn has enabled GDI to become a world-class drilling service company.  It has also given us the opportunity to provide our drilling services at regional competitive market rates. I would like to take this opportunity to express my sincere gratitude and deep appreciation for the support and guidance of H.E. Dr. Mohammad Bin Saleh Al Sada, Minister of Energy and Industry, QP Chairman & Managing Director and I would also like to thank QP’s Operations Directorate for their continued support of GDI. We remain committed to their success.”

GDI will soon commence the process of recruiting additional personnel and providing the necessary training, certification and orientations so that they can man these rigs and operate the ancillary equipment in a safe and efficient manner.

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